Retirement tax questions

Yes, you can apply the excess to 2023 if you know that you will be able to make the contribution for 2023. Your financial institution doesn't have to do anything, you will just leave the contribution in the account. You use your 2023 tax return to apply the excess as a 2023 contribution. You will have to pay the 6% excess contribution penalty for 2022.

On your 2022 tax return:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “Roth IRA” and enter your Roth contribution
5. Continue through the interview and TurboTax will create Form 5329 to calculate the 6% penalty.

To apply the excess as a 2023 contribution on your 2023 tax return:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. On the "Do you have any Excess Roth Contributions" answer "Yes"
5. On the "Enter Excess Contributions" screen enter the total excess contribution from 2022 (if it wasn't carried over).
6. On the "How Much Excess to 2023?" screen enter how much you want to apply to 2023.

Please see What happens if I made an excess Roth IRA contribution for additional information.